RPGT Return Form CKHT 1A/1B (Malaysia)

A RPGT Return Form CKHT 1A/1B in Malaysia sets out the terms, contributions, or returns governing the arrangement it documents.

The CKHT 1A form is filed by the disposer (seller), reporting the disposal price, acquisition price, permitted expenses (legal fees, stamp duty, renovation costs), chargeable gain, and RPGT payable. The CKHT 1B form is filed by the acquirer (buyer), reporting the acquisition price and the amount of RPGT retention withheld from the disposal price. Both forms must be filed within 60 days from the date of disposal under Section 13(2) of the Real Property Gains Tax Act 1976. The date of disposal is generally the date the sale and purchase agreement (SPA) is signed, under the disposal date rules in Schedule 2 to the RPGT Act 1976.

RPGT rates in Malaysia vary by holding period and the disposer's status. For Malaysian citizens and permanent residents: disposals within 3 years attract 30% RPGT; disposal in the 4th year attracts 20%; disposal in the 5th year attracts 15%; disposal after 5 years (from YA 2022 onward) attracts 0% RPGT, pursuant to the Real Property Gains Tax (Exemption) Order 2022. For companies and non-citizens: disposals within 3 years attract 30%; 4th year 20%; 5th year 15%; after 5 years 10% (non-citizens) or 10% (companies), under the Finance Act 2022 amendments.

Several RPGT exemptions are available. The once-in-a-lifetime principal residence exemption under Paragraph 2 of Schedule 3 to the RPGT Act 1976 exempts a Malaysian citizen's gain on disposal of their own dwelling house, available once per individual. Gifts between spouses, gifts from parents to children (between 1 January and 31 March 2023 only under a specific exemption order), and disposals resulting from compulsory acquisition under the Land Acquisition Act 1960 are also exempt.

Under the retention mechanism in Section 21B of the RPGT Act 1976, the acquirer must retain 3% of the disposal price (for Malaysian citizens and PRs) or 7% (for non-citizens and companies) from the purchase consideration and remit it to LHDN as a security deposit. This retention is set off against the disposer's final RPGT liability and any surplus is refunded to the disposer.

RPGT Return Forms CKHT 1A and CKHT 1B are required whenever a chargeable asset under the Real Property Gains Tax Act 1976 is disposed of in Malaysia.

CKHT 1A (disposer) and CKHT 1B (acquirer) are required when a residential or commercial property in Malaysia is sold under a sale and purchase agreement (SPA). Both the seller and the buyer must file their respective CKHT forms within 60 days of the SPA date, regardless of whether RPGT is ultimately payable — even where the gain is exempt, the forms must be filed and an exemption claimed.

CKHT forms are required when shares in a real property company (RPC) are sold. Where 75% or more of a company's tangible assets consist of real property, shares in that company are treated as chargeable assets under the RPGT Act 1976, and both the selling shareholder (disposer) and the buying shareholder (acquirer) must file CKHT forms.

CKHT 1A is required when a property is transferred as a gift — except where the transfer qualifies for a specific exemption order. The gifting of property does not eliminate RPGT obligations; LHDN deems the disposal price as the market value of the property unless an exemption applies.

CKHT forms are needed when a Malaysian property is transferred pursuant to a court order — for example, in a matrimonial property settlement under the Law Reform (Marriage and Divorce) Act 1976, or in a corporate liquidation under the Companies Act 2016. Each court-ordered transfer constitutes a disposal under the RPGT Act 1976 unless a specific exemption applies.

CKHT 1A is required when a property developer disposes of completed units to purchasers. Property developers are typically exempt from RPGT on trading stock under the RPGT Act 1976 (since their property is trading stock, not a capital asset), but must file CKHT returns annually to substantiate the exemption.

A complete RPGT Return Form CKHT 1A (disposer) for Malaysia must contain the following essential elements.

Disposer Identification: The full legal name, NRIC or SSM registration number, LHDN income tax reference number, and address of the disposer must be stated. For companies, the company tax reference (prefix 'C') and SSM registration number are required. The disposer's residency status — Malaysian citizen, permanent resident, non-citizen, or company — determines the applicable RPGT rate table.

Property Details: The full address of the disposed property, the title number (lot number, title type — Geran/Pajakan/Mukim), the area, and the state where the property is situated must be stated. The property's LHDN valuation reference, if the property was previously assessed, should also be included.

Disposal Date and Acquisition Date: The date of disposal (SPA signing date or transfer date as applicable under Schedule 2 to the RPGT Act 1976) and the date of acquisition must be stated to determine the holding period and thus the applicable RPGT rate.

Disposal Price: The actual disposal price agreed in the SPA or, for deemed disposals, the market value determined by a registered valuer under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (LPPEH Act), must be stated. For genuine commercial transactions, the SPA price is accepted as the disposal price.

Acquisition Price and Permitted Expenses: The original acquisition price and all permitted expenses claimable under Schedule 2 to the RPGT Act 1976 — legal fees and stamp duty paid on acquisition, estate agent fees, renovation and improvement costs (with supporting receipts), and SPA legal fees on disposal — must be stated. Permitted expenses reduce the chargeable gain.

Chargeable Gain and RPGT Payable: The chargeable gain (disposal price less acquisition price less permitted expenses) and the RPGT computed at the applicable rate must be stated. Any exemptions claimed — principal residence exemption, spousal gift exemption, or statutory 10% individual exemption under Paragraph 2A of Schedule 3 — must be declared with the relevant legal basis.

Retention Amount: The 3% (citizen) or 7% (non-citizen/company) retention withheld by the acquirer under Section 21B must be declared and set off against RPGT payable. CKHT 1B filed by the acquirer must match the retention amounts declared on CKHT 1A.

Additional compliance elements for a RPGT Return Form CKHT 1A/1B (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.